New home buyers will pay $80,000 more than before the pandemic – if they can find a home to buy at all

0

andresr / iStock.com

If you’re worried about having to pay a lot more money for a house in 2022 than a few years ago, you can rejoice in the fact that you might not find a house anyway.

Housing market: House prices jumped 18.8% in November – and it’s actually a slowdown
Explore: Appliance prices have risen 13% due to inflation – how homeowners can avoid the extra costs

Since 2019, average home prices in the United States have increased by nearly 30%, which means that a typical home costs about $80,000 more than it did before the COVID-19 pandemic. according to a new analysis from the National Association of Realtors and Realtors. com.

At the same time, the stock of available housing has fallen dramatically, reaching record highs in 2021. There was a housing shortage even before the pandemic hit in 2020, and it has only gotten worse since. then, as homebuilders were handicapped by labor shortages, higher material costs and supply chain disruptions.

These two trends – rising house prices and a lack of available housing – have made the housing market particularly treacherous for middle-income people, the NAR said in a new report titled ‘The ‘Double Trouble’ of the Housing Market”, published this month. .

Related: How to Rent an Apartment with Bad Credit: 7 Steps to Follow

The researchers found that there are currently only about 1 million units available for sale in the United States, compared to nearly 4 million homes 15 years ago. This has intensified competition for homes, driving up prices.

Using an analysis of mortgage rates, home prices, and average wages, the NAR and Realtor.com learned the following:

  • A household earning between $75,000 and $100,000 a year can afford to purchase 51% of the current active housing inventory. That’s down from 58% in 2019, before the pandemic.
  • There is 57% less inventory now than in 2019. This means that not only can potential buyers afford fewer homes than they could before the pandemic, but they also have fewer available homes to choose from. .
  • About 245,300 homes are currently up for sale that a household earning $75,000 to $100,000 can afford to buy. This compares to the 656,200 units available for that same household before the pandemic. Using current numbers, there is only one listing available for 65 households in the $75,000 to $100,000 income bracket – well below one listing for 24 households in 2019.

The situation is even more difficult for households earning between $50,000 and $75,000 per year. Households in this income group can afford about 165,280 listings in 2022, up from 450,220 at the end of 2019.

See: Mortgage shopping? Beware of junk fees as CFPB launches review of bank, lender and fintech practices
Find: Business loans drive banking growth in 2022 as home and auto loans decline

If you’re wondering where to find a home for sale in the right price range, the best markets for those currently earning between $75,000 and $100,000 are Deltona, Florida; Des Moines, Iowa; Augusta, Georgia; Atlanta, Georgia; and McEllan, Texas.

More from GOBankingRates

About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work has also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal, and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting has won awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story “Saint Christopher” placed second in the 2019 Writer’s Digest short story competition. Two of her short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. Her first novel, Voodoo Hideaway, is published in 2021 by Atmosphere Press.

Share.

About Author

Comments are closed.